SECURITIES AND EXCHANGE COMMISSION
                                WASHINGTON, D.C.


                                   FORM 10-QSB

[ X ]  QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15 (d) OF THE SECURITIES
       EXCHANGE ACT OF 1934 FOR THE QUARTER ENDED SEPTEMBER 30, 2001

                                       OR

[   ]  TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES
       EXCHANGE ACT OF 1934 FOR THE TRANSITION PERIOD FROM _______ TO ________.

                         Commission File No. 0-30001


                       DARLINGTON COUNTY BANCSHARES, INC.
             (Exact Name of Registrant as Specified in the Charter)


                   Incorporated in the State of South Carolina
                I.R.S. Employer Identification Number 57-0805621


                    202 Cashua Street, Darlington, S.C. 29532
                    (Address of Principal Executive Offices)


                                 (843) 395-1956
              (Registrant's Telephone Number, including Area Code)



     Indicate  by check mark  whether the  registrant  (1) has filed all reports
required to be filed by Section 13 or 15(d) of the  Securities  Exchange  Act of
1934  during the  preceding  12  months(or  for such  shorter  periods  that the
registrant was required to file such reports),  and (2) has been subject to such
filing requirements for the past 90 days. [ X ] Yes [ ] No

     Indicate the number of shares  outstanding of each of the issuer's  classes
of common stock, as of the latest practicable date.


Common Stock - $.01 Par Value
158,000 Shares Outstanding on November 1, 2001





<PAGE>
                                     PART I
                              FINANCIAL INFORMATION

ITEM 1.  FINANCIAL STATEMENTS
<TABLE>
<CAPTION>

                       DARLINGTON COUNTY BANCSHARES, INC.
                           CONSOLIDATED BALANCE SHEETS
                             (DOLLARS IN THOUSANDS)

                                                                                       (UNAUDITED)            (AUDITED)
                                                                                      SEPTEMBER 30,          DECEMBER 31,
                                                                                           2001                  2000
                                                                                    -------------------   -------------------
<S>                                                                                 <C>                   <C>
ASSETS
     Cash and due from banks                                                                                          $1,090
                                                                                                $1,180
     Investment securities - held to maturity                                                      718                   720
     Investment securities - available for sale                                                  5,284                 4,662
     Other investments, at cost                                                                     50                    50
     Federal funds sold                                                                          4,014                 4,420

     Loans                                                                                      18,778                16,331
     Less allowance for loan losses                                                               (173)                 (252)
                                                                                    -------------------   -------------------


             Loans - net                                                                        18,605                16,079
     Premises and equipment - net                                                                1,091                   875
     Other assets                                                                                  424                   574
                                                                                    -------------------   -------------------

             Total assets                                                                      $31,366               $28,470
                                                                                    ===================   ===================

LIABILITIES
     Deposits
        Demand deposits                                                                         $5,004                $4,788
        Savings and NOW accounts                                                                11,885                 9,246
        Time deposits $100,000 and over                                                          1,577                 1,722
        Other time deposits                                                                      9,043                 8,994

             Total deposits                                                                     27,509                24,750
                                                                                    -------------------   -------------------

     Other liabilities                                                                             130                   132
                                                                                    -------------------   -------------------

             Total liabilities                                                                  27,639                24,882
                                                                                    -------------------   -------------------

STOCKHOLDERS' EQUITY
     Common stock - $.01 par value  authorized,  issued and outstanding  158,000
        shares at September 30, 2001 and
        December 31, 2000                                                                            2                     2
     Additional paid in capital                                                                  1,618                 1,618
     Retained earnings                                                                           2,074                 2,004
     Accumulated other comprehensive loss                                                           33                   (36)
                                                                                    -------------------   -------------------

             Total stockholders' equity                                                          3,727                 3,588
                                                                                    -------------------   -------------------

             Total liabilities and stockholders' equity                                        $31,366               $28,470
                                                                                    ===================   ===================
</TABLE>

           See notes to consolidated financial statements.


                                       -2-
<PAGE>
<TABLE>
<CAPTION>

                       DARLINGTON COUNTY BANCSHARES, INC.
                        CONSOLIDATED STATEMENTS OF INCOME
                  (DOLLARS IN THOUSANDS EXCEPT PER SHARE DATA)
                                   (UNAUDITED)

                                                                THREE MONTHS ENDED                    NINE MONTHS ENDED
                                                                   SEPTEMBER 30,                        SEPTEMBER 30,
                                                         ----------------------------------   ----------------------------------
                                                              2001              2000               2001              2000
                                                         ---------------   ----------------   ---------------   ----------------
<S>                                                      <C>               <C>                <C>               <C>
INTEREST INCOME
    Loans, including fees                                          $401               $401            $1,159             $1,185
    Investment securities
       U. S. Government Agencies                                     79                 83               224                246
       Municipal securities                                           7                  9                23                 28
       Other equity securities                                        1                  1                 2                  2
    Federal funds sold and securities purchased
       under agreements to resell                                    29                 34               128                106
                                                         ---------------   ----------------   ---------------   ----------------

            Total interest income                                   517                528             1,536              1,567
                                                         ---------------   ----------------   ---------------   ----------------

INTEREST EXPENSE
    Time deposits $100,000 and over                                  18                 26                61                 78
    Other deposits                                                  174                163               553                453
                                                         ---------------   ----------------   ---------------   ----------------

            Total interest expense                                  192                189               614                531
                                                         ---------------   ----------------   ---------------   ----------------

NET INTEREST INCOME                                                 325                339               922              1,036

PROVISION FOR LOAN LOSSES                                            15                 16                45                 61
                                                         ---------------   ----------------   ---------------   ----------------

            Net interest income after provision for
            loan              losses                                310                323               877                975
                                                         ---------------   ----------------   ---------------   ----------------

NONINTEREST INCOME
    Service charges on deposit accounts                              78                 64               225                173
    Other service charges, commissions and fees                      10                 12                20                 23
                                                         ---------------   ----------------   ---------------   ----------------

            Total noninterest income                                 88                 76               245                196
                                                         ---------------   ----------------   ---------------   ----------------

NONINTEREST EXPENSES
    Salaries and employee benefits                                  130                129               415                378
    Data processing                                                  27                 23                75                 70
    Occupancy                                                        17                 18                50                 58
    Furniture and equipment                                          15                 18                42                 50
    Other                                                            88                 58               238                195
                                                         ---------------   ----------------   ---------------   ----------------

            Total noninterest expenses                              277                246               820                751
                                                         ---------------   ----------------   ---------------   ----------------

    Income before income taxes                                      121                153               302                420
    Provision for income taxes                                       28                 51                73                123
                                                         ---------------   ----------------   ---------------   ----------------

            Net income                                         $     93           $    102          $    229            $   297
                                                         ===============   ================   ===============   ================

PER SHARE
    Average shares outstanding                                  158,000            158,000           158,000            158,000
                                                         ===============   ================   ===============   ================

    Net income                                                    $0.59           $   0.65             $1.45            $  1.88
                                                         ===============   ================   ===============   ================

    Dividends paid                                              $     -            $     -             $1.00            $  0.80
                                                         ===============   ================   ===============   ================
</TABLE>

           See notes to consolidated financial statements.

                                       -3-
<PAGE>
<TABLE>
<CAPTION>
                       DARLINGTON COUNTY BANCSHARES, INC.
                 CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY
                             (DOLLARS IN THOUSANDS)
                                   (UNAUDITED)


                                           COMMON STOCK                                             ACCUMULATED
                                     --------------------------
                                       NUMBER                     ADDITIONAL                           OTHER
                                         OF                        PAID IN         RETAINED        COMPREHENSIVE
                                       SHARES        AMOUNT        CAPITAL         EARNINGS        INCOME (LOSS)         TOTAL
                                     ------------ -------------  -------------  ---------------- ------------------  --------------

<S>                                      <C>      <C>             <C>           <C>              <C>                    <C>
BALANCE, JANUARY 1,                      158,000  $          2    $     1,618   $         1,787  $            (103)     $    3,304

Net income for period                          -             -              -               297                  -             297

Comprehensive income, net of tax
     Net change in unrealized gain
       on securities available for
       sale                                    -             -              -                 -                 24              24
                                                                                                 ------------------  --------------

     Comprehensive income                                                                                                      321

Cash dividend ($.80 per share)                 -                            -              (126)                 -            (126)

Par value conversion                           -          (788)           788                 -                  -               -
                                     ------------ -------------  -------------  ---------------- ------------------  --------------

BALANCE, SEPTEMBER 30, 2000
                                         158,000  $         2    $      1,618   $         1,958  $            (79)       $   3,499
                                     ============ =============  =============  ================ ==================  ==============


BALANCE, JANUARY 1, 2001                 158,000  $         2      $   1,618    $         2,003  $            (35)       $   3,588

Net income for period                          -             -              -               229                 -              229

Comprehensive income, net of tax
     Net change in unrealized gain
       on securities available for
       sale                                    -             -              -                 -                 68              68
                                                                                                 ------------------  --------------

     Comprehensive income                                                                                                      297

Cash dividend ($1.00 per share)                -             -              -              (158)                 -            (158)
                                     ------------ -------------  -------------  ---------------- ------------------  --------------

BALANCE, SEPTEMBER 30, 2001
                                         158,000  $         2     $    1,618    $         2,074  $              33          $3,727
                                     ============ =============  =============  ================ ==================  ==============

</TABLE>




           See notes to consolidated financial statements.

                                       -4-

<PAGE>
<TABLE>
<CAPTION>
                       DARLINGTON COUNTY BANCSHARES, INC.
                      CONSOLIDATED STATEMENTS OF CASH FLOWS
                             (DOLLARS IN THOUSANDS)
                                   (Unaudited)
                                                                                                 NINE MONTHS ENDED
                                                                                                   SEPTEMBER 30,
                                                                                        -------------------------------------
                                                                                              2001                2000
                                                                                        -----------------   -----------------
<S>                                                                                     <C>                 <C>
OPERATING ACTIVITIES
     Net income                                                                                     $229             $   297
     Adjustments to reconcile net income to net cash provided
        by operating activities
        Provision for loan losses                                                                     45                  61
        Depreciation                                                                                  38                  55
        (Increase) decrease in other assets                                                          150                   9
        Increase (decrease) in other liabilities                                                      (2)                 (8)
                                                                                        -----------------   -----------------

               Net cash provided by operating activities                                             460                 414
                                                                                        -----------------   -----------------

INVESTING ACTIVITIES
     (Increase) decrease in federal funds sold                                                       406             (1,960)
     Proceeds from maturities of investment securities
        held to maturity                                                                               -                 302
     Purchase of investment securities available for sale                                           (631)                 28
     Net increase in loan balances                                                                (2,492)               (534)
     Purchase of equipment                                                                          (254)                (11)
                                                                                        -----------------   -----------------

               Net cash provided by (used for) investing activities                               (2,971)             (2,175)
                                                                                        -----------------   -----------------

FINANCING ACTIVITIES
     Net increase (decrease) in deposits                                                           2,759               1,576
     Cash dividends paid                                                                            (158)               (126)
                                                                                        -----------------   -----------------

               Net cash used for financing activities                                              2,601               1,450
                                                                                        -----------------   -----------------

               Increase (decrease) in cash and cash equivalents                                       90                (311)

CASH AND CASH EQUIVALENTS, BEGINNING OF PERIOD                                                     1,090               1,409
                                                                                        -----------------   -----------------

CASH AND CASH EQUIVALENTS,  END OF PERIOD                                                        $ 1,180            $  1,098
                                                                                        =================   =================


CASH PAID FOR
     Interest                                                                                       $625             $   510
                                                                                        =================   =================

     Income taxes                                                                                   $105             $    89
                                                                                        =================   =================


</TABLE>

           See notes to consolidated financial statements.

                                       -5-
<PAGE>


                       DARLINGTON COUNTY BANCSHARES, INC.
              NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS


NOTE 1 - BASIS OF PRESENTATION

           The accompanying unaudited financial statements have been prepared in
accordance with generally accepted  accounting  principles for interim financial
information  and  with the  instructions  to Form  10-QSB  and  Item  310(b)  of
Regulation S-B of the Securities and Exchange Commission.  Accordingly,  they do
not  include all  information  and  footnotes  required  by  generally  accepted
accounting principles for complete financial statements. However, in the opinion
of management,  all  adjustments  (consisting of normal  recurring  adjustments)
considered necessary for a fair presentation have been included.

NOTE 2 - NET INCOME PER SHARE

           Net income per share is computed on the basis of the weighted average
number of common shares  outstanding  in accordance  with Statement of Financial
Accounting   Standards  No.  128,   "Earnings  per  Share".   Darlington  County
Bancshares,  Inc.  (the  "Company")  does  not have any  instruments  which  are
dilutive;  therefore,  only  basic  net  income  per  share of  common  stock is
presented.

NOTE 3 - ORGANIZATION

           The  Company  was  organized  in July 1999 for the purpose of being a
holding  company  for  Darlington  County  Bank (the  "Bank").  On July 1, 1999,
pursuant  to a  Plan  of  Merger  approved  by  the  shareholders,  all  of  the
outstanding  shares of capital stock of the Bank were  converted  into shares of
common stock of the Company.  A par value conversion of $788,000 was recorded in
July 1999 to  reflect a change in the par value of common  stock  from $5.00 per
share to $.01 per share. The Company presently engages in no business other than
that of owning the Bank and has no employees.

ITEM 2.

MANAGEMENT'S  DISCUSSION  AND  ANALYSIS  OF  FINANCIAL  CONDITION AND RESULTS OF
OPERATIONS

           The following  discussion and analysis  should be read in conjunction
with the financial  statements and related notes appearing in the Company's 2000
Annual Report to shareholders.  Results of operations for the nine months ending
September 30, 2001 are not necessarily  indicative of the results to be attained
for any other period.  The  following  information  may contain  forward-looking
statements that involve risks and  uncertainties.  The Company's  actual results
may  differ  materially  from  the  results  discussed  in  the  forward-looking
statements.

NINE MONTHS ENDED SEPTEMBER 30, 2001 COMPARED TO NINE MONTHS ENDED SEPTEMBER 30,
2000

RESULTS OF OPERATIONS - NINE MONTHS ENDED SEPTEMBER 30, 2001
   The  Company's  net income for the nine months ended  September  30, 2001 was
   $229,000  or $1.45 per share as  compared  to $297,000 or $1.88 per share for
   the nine  months  ended  September  30,  2000.  Net income  decreased  due to
   tightening  interest rate spreads  because of an overall lower  interest rate
   environment compared to the comparable period in the prior year.


                                                                     (Continued)
                                       -6-
<PAGE>

ITEM 2: (CONTINUED)

NET INTEREST INCOME
   Net interest income is the difference  between the interest earned on earning
   assets and the interest paid for funds acquired to support those assets.  Net
   interest income,  the principal  source of the Bank's earnings,  was $922,000
   and  $1,036,000  for the nine  months  ended  September  30,  2001 and  2000,
   respectively.

   Changes  that affect net  interest  income are  changes in the  average  rate
   earned  on  interest-earning  assets,  changes  in the  average  rate paid on
   interest-bearing  liabilities,  and changes in the volume of interest-earning
   assets and interest-bearing liabilities.

   Interest-earning  assets at September  30, 2001  increased by  $1,978,000  or
   7.35%  since  the same  period  in the  prior  year,  while  interest-bearing
   liabilities  increased by $1,999,000  or 11.15%  comparing the same period of
   2001 with 2000.
<TABLE>
<CAPTION>

                                                         AVERAGE BALANCES, INCOME AND EXPENSES, AND RATES
                                                              FOR THE NINE MONTHS ENDED SEPTEMBER 30,
                                        --------------------------------------------------------------------------------------
                                                          2001                                       2000
                                         ------------------------------------------ ------------------------------------------
                                            AVERAGE       INCOME/      ANNUALIZED      AVERAGE       INCOME/     ANNUALIZED
                                            BALANCE       EXPENSE      YIELD/RATE      BALANCE       EXPENSE     YIELD/RATE
                                         -------------- ------------- ------------- -------------- ------------ --------------

<S>                                         <C>         <C>                  <C>       <C>         <C>                 <C>
Federal funds sold                          $3,651,685  $   128,000          4.67%     $2,264,781  $   106,000         6.24%
Investment securities                        5,742,398      249,000          5.78%      6,001,589      276,000         6.13%
Loans                                       17,949,393    1,159,000          8.61%     16,718,848    1,185,000         9.45%
                                         -------------- ------------- ------------- -------------- ------------ --------------

     Total earning assets                $  27,343,476    1,536,000          7.49%  $  24,985,218    1,567,000         8.36%
                                         ==============                             ==============

     Total      interest      bearing     $ 26,080,599      614,000          3.14%   $ 23,994,194      531,000         2.95%
liabilities
                                         ============== ------------- ------------- ============== ------------ --------------

Net interest spread                                                          4.35%                                     5.41%

Net interest income/margin                                 $922,000          4.50%                  $1,036,000         5.53%
                                                        ============= =============                ============ ==============
</TABLE>


As  reflected  above,  for the nine months of 2001 the average  yield on earning
assets amounts amounted to 7.49%,
while the average cost of  interest-bearing  liabilities was 3.14%. For the same
period of 2000,  the average  yield on earning  assets was 8.36% and the average
cost of interest-bearing liabilities was 2.95%. The decrease in the in the yield
on earning assets is  attributable to a decrease in overall rates by the Federal
reserve.  During the first nine  months of 2001,  fed funds rate  decreased  350
basis points. The Bank also had a group of certificates of deposits that matured
and were renewed in the second quarter,  but increased  overall interest expense
during the year.  The net interest  margin is computed by  subtracting  interest
expense  from  interest  income and  dividing  the  resulting  figure by average
interest-earning assets. The net interest margin for the nine month period ended
September  30, 2001 was 4.50% and for the  comparable  period in 2000 was 5.53%.
This  decrease  was the  result of the  overall  lower  rate  environment  where
interest sensitive loans reprice more quickly than deposits.

The following  table  represents  changes in the  Company's net interest  income
which primarily result from changes in volume and rates of its  interest-earning
assets and interest-bearing  liabilities. The decrease in net interest income is
due to increased volume of both earning assets and interest bearing  liabilities
offset  by  a  decrease  in  rates  on  earning  assets  and  interest   bearing
liabilities.


                                                                     (Continued)

                                       -7-
<PAGE>

ITEM 2: (CONTINUED)

NET INTEREST INCOME, CONTINUED
<TABLE>
<CAPTION>

                                         ANALYSIS OF CHANGES IN NET INTEREST INCOME

                                                                                FOR THE NINE MONTHS ENDED
                                                                                  9/30/01 VERSUS 9/30/00
                                                                -------------------------------------------------------------
                                                                     VOLUME                 RATE             NET CHANGE
                                                                -------------------  -------------------  -------------------

<S>                                                               <C>                  <C>                   <C>
Federal fund sold                                                 $       65,000       $       (43,000)      $       22,000
Investment securities                                                    (12,000)              (15,000)             (27,000)
Loans                                                                     87,000              (113,000)             (26,000)
                                                                -------------------  -------------------  -------------------

       Total earning assets                                              140,000              (171,000)             (31,000)

       Total interest on interest-bearing liabilities                    (46,000)              (37,000)             (83,000)
                                                                -------------------  -------------------  -------------------

Net interest income                                               $      (94,000)    $        (208,000)   $        (114,000)
                                                                ===================  ===================  ===================
</TABLE>


NONINTEREST INCOME
   Noninterest income for the nine months ended September 30, 2001 and 2000 were
   $245,000 and $196,000, respectively.  Noninterest income is comprised of fees
   and charges on deposits. Service charges on deposits increased over the prior
   year.

NONINTEREST EXPENSES
   Noninterest  expenses for the nine months ended  September  30, 2001 and 2000
   were $820,000 and $751,000, respectively.  Noninterest expenses increased due
   to cost of living and merit  increases in  salaries.  Other  cpmponents  were
   consistent  with  prior  year  due to the  results  of  operations  remaining
   relatively stable.

ALLOWANCE FOR LOAN LOSSES
   The allowance for loan losses was .92% of loans, net of unearned  income,  at
   September 30, 2001 compared to 1.46% at September 30, 2000.  This decrease is
   due to charge-offs  of $235,210  which is primarily  related to one borrower,
   which will be partially  offset by an anticipated  recovery that had not been
   received  at the close of the  quarter.  The  provision  for loan  losses was
   $45,000 and $61,000 for the nine months  ended  September  30, 2001 and 2000,
   respectively.  Management reviews the adequacy of the allowance on an ongoing
   basis and believes the allowance is adequate to fund potential  losses in the
   portfolio at September 30, 2001.

THREE MONTHS ENDED SEPTEMBER 30, 2001 COMPARED TO THREE MONTHS  ENDED  SEPTEMBER
30, 2000

RESULTS OF OPERATIONS - THREE MONTHS ENDED SEPTEMBER 30, 2001
   The  Company's  net income for the third quarter of 2001 was $93,000 or $0.59
   per share  compared to  $102,000  or $.62 per share for the third  quarter of
   2000.

NET INTEREST INCOME
   Net interest income is the difference  between the interest earned on earning
   assets and the interest paid for funds acquired to support those assets.  Net
   interest income,  the principal  source of the Bank's earnings,  was $325,000
   and  $339,000  for  the  quarters   ended   September   30,  2001  and  2000,
   respectively.




                                       -8-

<PAGE>

ITEM 2: (CONTINUED)

NONINTEREST INCOME
   Noninterest  income  increased  due to higher  service  charges  collected on
   deposits.  During the three months ended  September 30, 2001 and 2000 amounts
   were $88,000 and $76,000, respectively.

NONINTEREST EXPENSES
   Noninterest  expenses for the three months ended  September 30, 2001 and 2000
   were  $277,000 and $246,000,  respectively.  Noninterest  expenses  increased
   slightly compared to prior period amounts.

PROVISION FOR LOAN LOSSES
   The  provision  for loan losses was $15,000 and $16,000 for the three  months
   ended  September  30, 2001 and 2000,  respectively.  The 2000  provision  was
   consistent  with the third  quarter  of the prior year as the  allowance  was
   funded for the growth in the loan portfolio.

FINANCIAL CONDITION
   The Company's  primary source of funds for loans and investments is deposits.
   Deposits were $27,509,000, an increase of $1,999,000 from September 30, 2000.
   This  increase  was used  primarily  to fund an increase  in loans.  The loan
   portfolio increased $1,772,000.

LIQUIDITY
   Liquidity  is the  ability to meet  current  and future  obligations  through
   liquidation or maturity of existing assets or the acquisition of liabilities.
   The Company manages both assets and liabilities to achieve appropriate levels
   of liquidity.  Cash and  short-term  investments  are the  Company's  primary
   sources of asset liquidity.  These funds provide a cushion against short-term
   fluctuations  in cash flow from  both  deposits  and  loans.  The  investment
   portfolio  is the  Bank's  principal  source of  secondary  asset  liquidity.
   However,  the  availability  of this source of funds is  influenced by market
   conditions.  Individual and commercial deposits are the Bank's primary source
   of funds  for  credit  activities.  Management  believes  that the  Company's
   liquidity sources are adequate to meet its operating needs.

LOANS
   Commercial,  financial and agricultural loans made up 32.3% of the total loan
   portfolio as of September  30, 2001,  totaling  $6,052,000.  Loans secured by
   real estate for construction and land development  totaled $1,029,000 or 5.5%
   of the total loan  portfolio  while all other  loans  secured by real  estate
   totaled  $7,329,000 or 39.0% of the total loan  portfolio as of September 30,
   2000.  Installment  loans and other consumer  loans to  individuals  totaling
   $4,360,000 comprised 23.2% of the total loan portfolio.

CAPITAL RESOURCES
   Stockholders'  Equity for the  Company  increased  by  $139,000  for the nine
   months of 2001. This net change includes an increase to equity for net income
   of  $229,000  offset  by  an  increase  in  unrealized  gains  on  investment
   securities  of $68,000 and cash  dividends  paid of $158,000.  The  Company's
   equity to asset ratio was 11.90% on September 30, 2001, as compared to 12.00%
   on September 30, 2000.

   The  Federal  Deposit   Insurance   Corporation  has  issued  guidelines  for
   risk-based capital requirements. As of September 30, 2001, the Bank's capital
   ratios were as follows:
<TABLE>
<CAPTION>

                                                        CAPITAL RATIOS
                                                    (AMOUNTS IN THOUSANDS)
                                                                                                            ADEQUATELY
                                                                             WELL CAPITALIZED               CAPITALIZED
                                                    ACTUAL                     REQUIREMENT                  REQUIREMENT
                                          ---------------------------- ---------------------------- ---------------------------
                                             AMOUNT         RATIO         AMOUNT         RATIO         AMOUNT        RATIO
                                          -------------- ------------- ------------- -------------- ------------ --------------

<S>                                          <C>               <C>        <C>               <C>       <C>               <C>
Total capital (to risk weighted assets       $  3,867          19.0%      $  2,040          10.0%     $  1,632          8.0%

Tier 1 capital (to risk weighted assets         3,694          18.1%         1,224           6.0%          816          4.0%

Tier 1 capital (to average assets)              3,694          11.8%         1,556           5.0%        1,253          4.0%
</TABLE>

                                       -9-

<PAGE>

ITEM 2: (CONTINUED)

ASSET QUALITY
   Nonperforming assets as a percentage of loans and foreclosed property totaled
   .22% and 5.77% as of September 30, 2001 and December 31, 2000,  respectively.
   Nonperforming  assets were $43,000 as of  September  30, 2001 and $940,491 at
   December 31, 2000. The  nonperforming  assets at December 31, 2000 included a
   farm loan totaling  $926,000 of which  $740,000 was  guaranteed  and received
   from the US Government.   Charge-offs  during the nine months ended September
   30, 2001 and 2000 were $235,210 and $15,437, respectively.

 EFFECTS OF REGULATORY ACTION
   The management of the Company is not aware of any current  recommendations by
   regulatory  authorities,  which if they were to be implemented,  would have a
   material effect on liquidity, capital resources, or operations.

IMPACT OF INFLATION
   Unlike most  industrial  companies,  the assets and  liabilities of financial
   institutions  such as the Bank are primarily  monetary in nature.  Therefore,
   interest rates have a more significant  impact on the Bank's performance than
   do the effects of changes in the  general  rate of  inflation  and changes in
   prices.  In  addition,  interest  rates do not  necessarily  move in the same
   magnitude  as the  prices of goods and  services.  As  discussed  previously,
   management  seeks to manage  the  relationships  between  interest  sensitive
   assets and  liabilities in order to protect  against wide rate  fluctuations,
   including those resulting from inflation.

RECENTLY ISSUED ACCOUNTING STANDARDS

   In July  2001,  the SEC  issued  Staff  Accounting  Bulletin  (SAB) No. 102 -
   Selected Loan Loss Allowance Methodology and Documentation Issues. This staff
   accounting bulletin clearly defines the required development,  documentation,
   and application of a systematic  methodology  for determining  allowances for
   loan and lease  losses  in  accordance  with  generally  accepted  accounting
   principles. The Company believes that it is in compliance with SAB 102.

   Other accounting standards that have been issued or proposed by the Financial
   Accounting  Standards Board that do not require  adoption until a future date
   are not  expected  to have a material  impact on the  consolidated  financial
   statements upon adoption.


PART II - OTHER INFORMATION

ITEM 1. LEGAL PROCEEDINGS

There are no  material  pending  legal  proceedings  to which the Company or its
subsidiary party or of which any of their property is the subject.

ITEM 2.  CHANGES IN SECURITIES

Not Applicable

ITEM 3.  DEFAULTS UPON SENIOR SECURITIES

Not Applicable




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<PAGE>

ITEM 4.  SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS

There were no matters  submitted to security holders for a vote during the three
months ended September 30, 2000.

ITEM 5.  OTHER INFORMATION

None

ITEM 6. EXHIBITS AND REPORT ON FORM 8-K

None


SIGNATURES


Under the requirements of the Securities Exchange Act of 1934, the Bank has duly
caused this report to be signed on its behalf by the undersigned  thereunto duly
authorized.




            DARLINGTON COUNTY BANCSHARES, INC.
                    Name of Company



By:  /s/ Albert L. James, III                     Date:
     ---------------------------------------           -----------------------
     Albert L. James, III
     Secretary and Treasurer























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